ESI contribution rate reduced from 1.75% to 1% for employees

The ESI Corporation during its recently held 177th meeting under the Chairmanship of Santosh Kumar Gangwar, Union Minister of State for Labour and Employment (I/C), has taken some important decisions towards improvements in its service delivery mechanism.

New Delhi: Labour And Employment ministry announced on Friday that the ESI contribution by employees and employers will be reduced from 1.75% to 1% and 4.75% to 4% respectively of the wages and a draft notification has been issued by the government on 15th February, 2019 for the same. The decison was announced in ESI corporation's 177th meeting held under the Union minister for Labour And Employement, Santosh Gangwar.

ESI contribution rate reduced from 1.75% to 1% for employees

Along with this it was also decided that ESIC will bear the full cost of ESI scheme "in the prescribed ceiling of per IP expenditure" for a period of 3 years begining 2019-20. The meeting took various decisons to improve its delivery mechanism which include expanding the income limit for the dependent parents of an insured person from Rs 5000 per month to Rs 9000 per month. From 7/8 share of expenses of ESI scheme , ESIC will now bear 1/8 share of expenses which are to be borne by the states.

The other decisions included, setting up of 500 bedded ESIC Model Hospital at Sheelanagar, for which it will acquire more 10.56 acres of land in addition to existing 8.58 acres. ESI dispensary will be upgraded to 30 bedded ESI hospitals with 20,000 IPs population in plain area and 15,000 IPs population in hilly areas.This has been decided to bridge the gap in indoor health care facilities.

The meeting also took decision of starting paramedical courses of DOTT and DMRT at hospital college complex, Gulbarga. 40 other agendas were also approved to improve administrative services and the services and benefits to insured people and beneficiaries.